Nothing is ever the fault of the “exceptional” United States. It’s not our fault that we have to spend trillions containing the evil terrorists in the Middle East while we steal their oil and occupy their countries.
And of course it’s China’s fault that the U.S. stock market is all of a sudden finding the gravitational pull of economic, financial and political fundamentals.
China must be the reason that the U.S. stock market has been bought up the highest p/e ratio in history. Note: I’m using a p/e ratio based on the way earnings were calculated using GAAP 20 years ago – not today’s garbage GAAP which enables companies to manipulate their accounting to an extreme degree.
I guess it’s China’s fault that almost every public and private pension fund in the U.S. is extraordinarily underfunded.
It’s probably even China’s fault that U.S investors and pensions gobbled up shale oil industry junk bonds like they were going out of style on the assumption that oil would stay above $100/barrel forever.
It’s China’s fault that student debt and auto loans have hit an all-time high in this country. When housing prices crash again that will be China’s fault too.
I guess when it comes right down to it, it’s China’s fault that Hilary Clinton is being hounded by problems with her use of her personal email to sell U.S. foreign policy decisions to the highest bidder while she was Secretary of State. Hell, I guess it was China who took a paper towel and wiped clean the hard drive on her personal server.
The fact of the matter is that there was indeed a series of big asset bubbles that formed in China. But they are no different or more severe than the same asset bubbles that have formed all over the world, including and especially in the United States. But at least China is trying to address its bubbles. It was the first to throw its cards on the table and try to let some air out its asset bubbles. Meanwhile the U.S. continues to defend and inflate its bubbles.
I mean, c’mon on – triple C-rated junk bonds in this country were trading at 4% at one point. A triple C rating means that the company which issued that debt has a very high probability of going bust. Triple C-rated paper in the 1990’s traded at yields in the high teens or higher. More than likely CCC- rated bonds become the new equity of a company when it files for bankruptcy reorganization. Or it becomes worth pennies on the dollar if the company liquidates. Triple C-rated paper trading at 4% implies an extreme bubble in the junk bond asset class. But that’s China’s fault, I guess.
This will not end well for the United States. The problem with forcing the “blame China” propaganda on the U.S. public is that it inevitably will lead to a scenario in which the U.S.Government’s neocons who run the Department of Defense will justify starting a war with China. A war with Russia is being started in Syria as I write this. But that’s China’s fault too…